Hat tip to Matt Franko, a MNE contributor, on this one. Matt does some great analytical work.
Anyway, he brought to my attention the fact that the Federal Gov't hit the debt ceiling on Monday, 12/31. Boehner abruptly cancelled the vote on the Hurricane Sandy aid bill on Tuesday, even though he had promised to hold it. An aide to Boehner said it was because of "everything that was going on," related to the fiscal cliff.
But was the real reason for the cancellation the fact that Boehner spoke to Tim Geithner and was informed that there are no funds for Sandy? Once the gov't is at the debt limit, then any new spending can only come from some other expenditure being cut.
I am sure Chris Christie does not know this, nor does Gov Cuomo, Peter King and definitely not that dunce, Michael Grimm.
Moreover, even if the vote is held, I am not sure these states will be receiving funds anytime soon. How does that happen under the debt ceiling?
While I hate to see the innocent victims of Sandy suffer, their representatives are avowed deficit hawks (with the exception of Cuomo) and have been railing for less spending and telling us the government was broke and out of money for a long, long, time. They've also been against raising the debt ceiling. So guess what guys? Your wish has come true...the gov't is out of money and it's YOUR constitutents who are going to feel it.
